Asda makes move to buy direct

Asda has confirmed to MCV that it has started buying stock directly from entertainment suppliers – to avoid a Christmas stock crisis in the wake of EUK’s demise.

MCV understands that the firm still had six months left on a contract with EUK when the firm fell into administraion yesterday.

Asda first admitted the existence of a plot to buy direct from suppliers in October – but said that it would only exercise it should Woolworths’ problems affect its trading.

The company told MCV this morning that it was still “monitoring the situation with EUK closely” and “staying in close contact with the administrators”. Some have even speculated that Asda could make a spectacular takeover of the company.

However, a spokesperson added:

“We have already started putting our contingency plans into action and are confident that customers won’t notice a thing.”

ASDA’s confidence in its Christmas stock levels is shown in its decision to launch a national poster campaign for DVD boxsets – whilst it has promised Take That fans that the group’s new CD will definitely be in stores on Monday.

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Tags: asda , woolworths , euk

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